Scanwolf expects RM99.6mil profit from property project in Perak

ipameru070915 15... The new bus terminal, Amanjaya Terminal in Bandar Meru Raya.

KUALA LUMPUR: Scanwolf Corp Bhd plans to carry out a mixed development project in Kampar, Perak, with a gross development value of RM317mil and a projected profit of RM99.6mil.

In a statement to Bursa Malaysia, the company said the 12.22-acre development, which comprises commercial suites, townhouses, two apartment blocks and a hotel, would be undertaken by its indirect unit, Scanwolf Development Sdn Bhd.

These properties will surround a proposed integrated bus terminal complex (IBTC) which Scanwolf expects to improve the marketability of its properties and allow them to command a higher premium.

On Wednesday, Scanwolf sealed a deal to sell 3.72 acres to public transport provider The Combined Bus Services Sdn Bhd (TCBS), a 99.9% subsidiary of Perak Transit Bhd, for RM1.296mil in order for TCBS to build and operate the bus terminal building. TCBS will also pay an infrastructure contribution of RM324,086.

TCBS currently operates an integrated bus terminal complex in Ipoh.

The 3.72 acres sold to TCBS form part of Scanwolf’s total 59-acre leasehold land in Kampar. The remaining land has a net buildable area of 12.22 acres. 

Scanwolf said the proposed land disposal was expected to result in book value loss of about RM2.9mil at group level.

However, it envisioned that with the improved transportation connectivity provided by the IBTC, the value of its remaining land would be enhanced.

The IBTC, Scanwolf said, would provide an integrated public transport system, i.e. local bus services, express bus, taxi, and shuttle bus. It will have a waiting area with a shopping complex, fitness centre, banquet hall, cineplex, café, restaurants and other common facilities.

Scanwolf said the proposed land disposal would help to integrate corporate social responsibility elements into its strategic business management.

This is the first property project announced by Scanwolf since it declared last month the close of the investigation on suspected financial irregularities related to Scanwolf Development’s operations. On Dec 23 it also disbanded the investigative committee.

After four consecutive financial years being in the red, Scanwolf has a pressing need to prove to investors that it has the ability to turn around. For the 15-month financial period ended June 30, 2015, the group posted an after-tax loss of RM4.1mil.

Besides property development, Scanwolf also manufactures furniture and building materials.

The counter gained 3 sen to close at 37 sen on Wednesday, with 5.65 million shares changing hands.